Dow Falls More Than 500 Points

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Traders work on the floor of the New York Stock Exchange on April 30, 2014 in New York City. The Dow Jones industrial average closed at a new record high Wednesday after the Federal Reserve said it would reduce its bond-buying program. According to preliminary calculations, the Dow Jones industrial average rose 45.47 points, to 16,580.84.

The Dow fell more than 500 points Friday, plunging for a second straight day and hitting a 10 percent decline from its all-time high — the definition of a market correction.

Investors continue to worry that a stalled Chinese economy could hammer companies and countries around the world.

Apple — which relies heavily on Chinese demand — fell more than six percent.

"Right now there is a feeling of fear in the marketplace, and all news is interpreted negatively and it's interpreted indiscriminately," Tom Digenan, head of U.S. equities at UBS Global Asset Management, told CNBC.